Join us as we delve into the fascinating journey of Acumen Growth Catalyst Billy Hodes, who transformed Midland Industries from a distressed company to a platform of success. In this episode, we explore the stages of revenue growth from $5 to $150 million, discussing key strategies, challenges, and insights on scaling a business. Billy shares valuable experiences from his role as a CEO, his partnership with private equity, and the importance of cultivating a strong company culture.

 

Episode Summary

0:00–1:00

  • Host Dan Cooper introduces the podcast and guest Billy Hodes, former CEO and CMO of Midland Industries.

  • Episode topic: Scaling revenue from $5M to $150M.

  • Billy is now a Growth Catalyst at Acumen in Kansas City.

1:00–2:30

  • Billy shares his background: began in 2002 by purchasing a distressed company.

  • Operated independently for 12 years before merging in 2015.

  • Eventually partnered with private equity, built a platform, rolled up 7 businesses, and exited in 2023.

2:30–5:15

  • Describes initial acquisition: company was financially struggling and close to liquidation.

  • Modeled it as a two-year turnaround.

  • Got it to profitability by reinvesting in people, product lines, and customers.

5:15–7:00

  • Flywheel began turning around 2006–2007.

  • Mentions importance of a peer advisory group in early stages.

  • Emphasizes hiring people smarter than himself and empowering them.

7:00–11:00

  • Culture as the differentiator: joy in work, mutual respect, fun.

  • Introduced a transparent bonus program in 2015 (led by his brother Vince):

    • Employees understood the company’s break-even and contributed to profits.

    • About 50% of income came from this performance-based bonus.

    • Encouraged thinking like owners and maximizing efficiency.

11:00–13:00

  • Bonus program helped retain talent and navigate crises (e.g., 2008 recession, COVID) without layoffs.

13:00–15:00

  • Reflections on the first growth phase: what worked early on didn’t necessarily work for the next phase.

  • Recognizes the need for earlier adoption of technology and team expansion.

15:00–17:00

  • 2015 merger: his $10M company merged with a $40M one (run by his brother).

  • Complementary skills, similar products, different markets.

  • A “test run” for future acquisitions.

17:00–18:30

  • Initially declined private equity in 2017.

  • After PE firm bought a competitor, they returned and partnered with Midland in 2018.

  • Sold majority ownership but kept leadership intact.

18:30–21:00

  • Used PE capital to roll up 7 companies over 4 years.

  • Offered succession plans and value to acquisition targets.

  • Emphasizes trust, execution by empowered teams, and shared outcomes.

21:00–23:00

  • Discusses pros and cons of family businesses.

  • His experience: success due to shared values, trust, and alignment.

  • Avoided common pitfalls through intentional culture and strong leadership.

23:00–25:00

  • Faith and leadership: rooted in Jesuit values—“serve God by serving others.”

  • Work ethic and mission-oriented mindset key to personal and professional success.

25:00–27:00

  • LinkedIn is the best place to connect with Billy (not billyhodes.com—that’s his artist son).

  • Also on acumenimpact.com.

27:00–30:00

  • Final takeaways by Dan:

    • Entrepreneurial mindset can turn a 4/10 business into a success.

    • Open-book management and shared incentives are powerful.

    • Culture that invites others creates long-term retention.

  • Billy’s advice: Don’t go it alone—surround yourself with a trusted, supportive community.

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